
Despite months of speculation and excitement around Tesla’s potential entry into India’s manufacturing space, Union Minister for Heavy Industries HD Kumaraswamy has stated that the electric vehicle giant is not planning to set up a manufacturing plant in the country. Instead, Tesla is reportedly exploring the option of opening showrooms in major Indian cities and importing its electric vehicles via the Completely Built Unit (CBU) route.
This development comes at a time when the Indian government has made strategic amendments to its electric vehicle policy to encourage foreign investments, especially from global players like Tesla. The EV giant has also recently increased the pace of hiring in India, hinting at some level of operational build-up in the country.
Tesla Keen on Showrooms, Not Local Production
The latest statement from the Heavy Industries Minister makes Tesla’s current intent clear. “Tesla…they are only to start showrooms. They are not interested in manufacturing in India,” Kumaraswamy reportedly said, as quoted by news agency ANI.
Echoing a cautious stance, Heavy Industry Secretary Kamran Rizvi added, “The real intent we’ll know when we open the application.” He also pointed out that there has been no official communication from Tesla regarding plans to manufacture EVs in India.
Previously, Tesla had expressed interest in entering the Indian market by importing its vehicles and selling them through local showrooms. This aligns with its recent hiring activity and reported plans to establish a retail network in the country.
Global Carmakers Show Interest in India’s EV Manufacturing Push
While Tesla appears reluctant to invest in local manufacturing, several other international automakers are showing strong interest. Kumaraswamy noted that brands like Hyundai, Mercedes-Benz, Skoda, and Kia have expressed willingness to set up manufacturing facilities in India under the newly revised EV policy.
The updated policy includes a significant reduction in import duties — down to 15% — and various incentives designed to attract automakers willing to commit to manufacturing in India. These measures aim to promote India as a key destination for electric vehicle production and innovation.
Elon Musk’s Father Hints at Tesla’s Potential in India
Adding a personal angle to the broader business discussion, Errol Musk — father of Tesla CEO Elon Musk — shared his thoughts on Tesla’s presence in India during his ongoing visit to the country.
“That is something that I have to be careful not to say too much about. Tesla is a public company. It’s not ours…When you look at India and the population, the kind of people you’ve got here, the energy and everything and when I hear that, with great respect, BYD and various others are coming in, and Tatas and Mahindra are making great cars, I’m very inclined to say, wait, why aren’t we having Teslas here. But I can’t say too much. That’s just a personal point of view,” Errol Musk reportedly said.
New EV Policy Aims to Boost Domestic Production
To accelerate the growth of electric mobility, the Indian government has officially released the guidelines for its new Scheme to Promote Manufacturing of Electric Passenger Cars in India. The initiative focuses on encouraging EV manufacturing, reducing environmental impact, creating employment, and helping India achieve its net-zero emissions goal by 2070.
The scheme is also expected to attract global investments, enhance India’s capabilities in the electric mobility sector, and position the country as a top manufacturing hub for electric vehicles. According to government reports, this effort is closely tied to the broader “Make in India” mission and aims to put India on the global map for EV innovation and production.